SCS shares jump as furniture sales soar after lockdown
Shares in furniture retailer SCS jumped this morning as it reported a surge in demand following the coronavirus lockdown.
Order intake before lockdown was down 4.2 per cent on the previous year, plunging 92.5 per cent below 2019 levels during lockdown.
Demand bounced back as restrictions were eased, with order intake between 24 May and 25 July surging 92.2 per cent year-on-year. SCS’ share price was up 12.81 per cent following the announcement.
Overall, orders were 5.9 per cent down in the year ended 25 July.
Sales were £268m in the period, compared to £333m the previous year, due to the temporary closure of stores and SCS’ manufacturing partners’ facilities.
SCS said it is “encouraged” by trading since stores reopened after the UK’s coronavirus lockdown.
In an update this morning SCS said: “Encouragingly, post-lockdown trading has been very strong both in-store and online, with group order intake increasing 92.2 per cent when compared to the same period in the prior year.
“This reflects pent up demand, which has been supported by our well executed re-opening plans, our continued focus on value and customer service, and our increased investment in targeted marketing over the last two months.”
The retailer said it had repaid the £12m borrowed under its revolving credit facility and that cash on its balance sheet was £82.3m, up from £57.7m at the end of July last year.
It added: “SCS is a resilient business, with a strong balance sheet, coupled with a flexible cost base, and is well positioned to navigate these difficult circumstances and maximise opportunities as and when they arise.”